Guangdong Biolight Meditech Co., Ltd. (SZSE:300246) agreed to acquire 38.44% stake in Suzhou Jun Kang Medical Technology Co., Ltd. from Suzhou Junying Industrial Investment Enterprise (Limited Partnership), Suzhou Junjian Industrial Investment Enterprise (Limited Partnership) and Hong Kong World Technology Limited for approximately CNY 110 million on April 8, 2021. In a related transaction Guangdong Biolight Meditech signed a capital increase agreement with Suzhou Jun Kang Medical Technology. Under the terms, Guangdong Biolight Meditech will acquire stakes in three phases.

Guangdong Biolight Meditech will transfer 50% stake within 30 days of signing agreement and corresponding transfer price will be paid before December 30, 2021, 30% stake would be transferred before May 31, 2022, and corresponding transfer price will be paid before June 30, 2022, and 20% stake would be transferred before May 31, 2023, and corresponding transfer price will be paid before June 30, 2023. The financials of Suzhou Jun Kang Medical Technology for December 31, 2020, are total assets of CNY 213.5 million, net assets of CNY 121.37 million, revenue of CNY 16.64 million and net loss of CNY 25.5 million. The transaction is approved by the Board of Directors of Guangdong Biolight Meditech and does not need shareholder approval.

As of June 28, 2021, Guangdong Biolight Meditech completed the change of business registration of the first phase of its share transfer, and the Company now holds 70.22% stake.